Study: Half of Americans Say They’re in Financial Recovery Mode

Study: Half of Americans Say They’re in Financial Recovery Mode

Most Americans are still contending with the financial impact of the COVID-19 pandemic, according to the latest set of findings from Northwestern Mutual’s 2021 Planning & Progress Study. The research finds more than half (58 percent) of U.S. adults aged 18+ say they are in financial recovery mode, but among them nine of out ten (89 percent) express confidence that they will ultimately achieve a full financial comeback. 
The annual study found that both personal savings and retirement nest eggs have grown year over year: Average personal savings increased over ten percent ($65,900 to $73,100), while average retirement savings have seen a bigger jump of 13 percent ($87,500 to $98,800).

Among the behaviors that people say they’ve adopted and expect to maintain going forward are:

  • Reducing living costs/spending (e.g., cancel subscriptions, eat out less, etc.) – 45 percent
  • Paying down debt – 34 percent
  • Increasing investing – 33 percent
  • Regularly revisiting financial plans – 29 percent
  • Increasing use of tech/digital solutions to manage finances – 28 percent
  • Increasing retirement contribution/savings – 25 percent

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.